ELMA SOLUTIONS LTD

Executive Summary

ELMA SOLUTIONS LTD is a very small micro-entity with minimal net assets and tight working capital. While there are no red flags or overdue filings, the company’s limited financial scale suggests only conditional credit approval with close monitoring of liquidity and financial compliance. The director maintains full control, and the business appears stable but financially fragile due to its minimal equity base.

ELMA SOLUTIONS LTD - Analysis Report

Company Number: 13861925

Analysis Date: 2025-07-20 18:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ELMA SOLUTIONS LTD is an active micro-entity with minimal net assets (£100) and very limited financial scale. The company shows consistent but very modest working capital over the last three years. Given the small size, limited asset base, and low net current assets, the company has minimal buffer against financial stress or unexpected obligations. However, it has no overdue filings, stable director control, and shows no signs of financial distress or insolvency proceedings. Credit approval is possible but should be conditional on monitoring liquidity and ensuring the company does not overextend beyond its financial capacity.

2. Financial Strength:
   The balance sheet reflects a very small operation with net assets of £100 at the last two year-ends. Current assets and liabilities have roughly doubled from 2023 to 2024, but net current assets remain static at £100, indicating liabilities closely match assets. The company operates with a single employee and no fixed assets disclosed. The equity base is minimal, which limits financial resilience. No borrowings or long-term liabilities are evident, which reduces risk but also signals limited capacity for credit absorption.

3. Cash Flow Assessment:
   The near parity of current assets and current liabilities suggests tight working capital management but very limited liquidity cushion. The increase in current assets from £30,343 to £60,600 is matched by a proportional increase in current liabilities. Without detailed cash flow statements, it is unclear if cash inflows are stable or volatile, but the micro-entity status and size imply cash flow is modest and closely managed. The company’s ability to service debt or absorb financial shocks is limited and dependent on maintaining receivables and payables alignment.

4. Monitoring Points:

• Watch for any increase in liabilities that outpaces growth in current assets, which could strain liquidity.
• Monitor timely filing of accounts and confirmation statements to ensure compliance.
• Track any material changes in ownership or director appointments that could impact governance.
• Review any upcoming financial statements for evidence of profitability or cash flow improvement.
• Confirm the company does not seek credit beyond its modest financial capacity without additional security or guarantees.